Ackman’s Pershing Square Capital Management holds 29 million P&G shares. He called the company “one of the great businesses of the world.”

“It has a very attractive risk/reward value,” he added.

Ackman said P&G is under-earning for several reasons: Poor manufacturing productivity, building scale in emerging markets, spending 16% of revenue on marketing (and not getting sufficient return), and product pricing not optimized.

Ackman sees revenue in 2016 of $97.2 billion up from $83.9 billion this year. Earnings per share should grow from $4 to $6, he said. Ackman has talked up P&G before, but provided a new level of detail at the Sohn charity investing confab in New York Wednesday.

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There are 3 comments

MAY 8, 2013 2:35 P.M.

Charles wrote:

At a time when the company is underperforming expectations, why is the CEO on 21 other boards of directors. Maybe he has expertise that is valuable to many companies but he is earning the big bucks with P&G. This is where his concentration needs to be. Bob McDonald, come back home and concentrate your energy on the company that gave you your start and fortune.

MAY 8, 2013 2:56 P.M.

fred wrote:

Another Ackman loser. He does not seem to realize that people learned they did not have to pay P&G's high prices for name brand detergents, diapers, razors and batteries among other products. P&G will only see declining sales and margins in the future, something Warren Buffett has even commented on as he has been selling.

MAY 8, 2013 3:29 P.M.

J Ingham wrote:

Fred - Have to agree, will need to pull a rabbit out of their hats to buck the trend you lay out.

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